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8-K - FORM 8-K - MONSTER WORLDWIDE, INC.d768569d8k.htm
EX-99.2 - EX-99.2 - MONSTER WORLDWIDE, INC.d768569dex992.htm

Exhibit 99.1

 

LOGO

Monster Worldwide Reports Second Quarter 2014 Results

 

    Second Quarter Highlights:

 

    Revenue of $194.4 Million; Careers – North America Revenue Returns to Year-Over-Year Growth

 

    Cash Flow From Operations of $25 Million

 

    EBITDA of $26 Million; Careers – North America EBITDA Margin of 25%

 

    Non-GAAP EPS of $0.08; Break-Even on a GAAP Basis

 

    Repurchased 2 Million Shares of Common Stock in the Second Quarter Totaling $12 Million; Brings Total Repurchases to 25% of Shares Outstanding Since Q2 2013

 

    Significant Progress on Implementation of New “All the Jobs, All the People” Business Strategy:

 

    July 1 Commercial Launch of New Products in North America:

 

    TalentBin® by Monster: Provides Customers Access to Over 120 Million Social Profiles

 

    Monster Twitter Cards: Extends Monster Reach Across Broad Social Audiences

 

    Talent CRM: Self Service Campaign and Messaging Platform for Recruiters

 

    3 Million Job Postings Currently Aggregated on Monster Network

 

    North American and European Sales Force Realigned To Maximize Penetration of New Products

Weston, Massachusetts, August 5, 2014 — Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the second quarter ended June 30, 2014.

“We are making significant progress on our new strategy to transform our business around our three Strategic Pillars of Reach, Connections and Solutions,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “In the second quarter, we realigned our North American and European sales force to support our new product strategy and ensure the breadth and depth of our new product offerings will be fully utilized by our global customers. On July 1st, we implemented the first stage of our transformation by commercially introducing three exciting new products in North America: TalentBin by Monster, Monster Twitter Cards and Talent CRM and the initial reception by our customers has been strong. We will continue to work diligently to introduce new products in North America and Europe over the next few quarters and are confident that our new strategy will drive significant growth and profitability at Monster over the long term.”


Second Quarter 2014 Results

Total revenue of $194 million was down 3% compared to the second quarter of 2013. Revenue from the Company’s Careers—North America operations increased 1% on a year-over-year basis. Internet Advertising & Fees revenue was $16 million compared to $18 million in the second quarter of 2013. Historical quarterly revenue data is available in the Company’s supplemental financial information.

Total GAAP operating expenses of $190 million decreased 1% compared to $192 million in the second quarter of 2013. Net income for the second quarter of 2014 was break-even, compared to $3 million, or $0.03 per share, in the second quarter of 2013.

Non-GAAP net income was $7 million, or $0.08 per share, compared to $13 million, or $0.12 per share, in the second quarter of 2013. Non-GAAP operating expenses were $181 million, a 1% increase compared to the second quarter of 2013. Total EBITDA margin of 13% was led by Careers—North America with a 25% EBITDA margin. Pro-forma items are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the applicable GAAP measure in the accompanying tables.

Net cash provided by operating activities in the quarter was $25 million. Deferred revenue was $316 million, down 4% compared to the quarter ended June 30, 2013. The Company ended the quarter with total available liquidity of $192 million.

Six Month Results

Monster Worldwide reported total revenue of $393 million for the first six months ended June 30, 2014 compared to $412 million in the same period last year, a 5% decrease. Monster Careers revenue decreased 4% to $361 million compared with $375 million in the 2013 period. Internet Advertising & Fees reported revenue of $32 million compared to $37 million in the prior year period. The Company reported earnings from continuing operations of $2 million, or $0.02 per share, compared to $15 million, or $0.14 per share, in the prior year period.

 

2


Share Repurchase

During the second quarter 2014, Monster repurchased 2 million shares of its common stock at an average price of $5.88 per share, for a total of $12 million. Since the inception of the existing program in the second quarter of 2013, the Company has repurchased 28 million shares, or approximately 25% of its outstanding shares, at an average price of $5.73. At June 30, 2014, there was $42 million remaining under the Company’s previously announced $200 million share repurchase program.

Company Provides Q3 EPS Guidance

Third quarter 2014 Non-GAAP EPS from continuing operations is expected to be in the range of $0.00 to $0.04, which excludes approximately $8 million of stock-based compensation.

Historical data on Non-GAAP EPS excluding stock-based compensation expense is available in the Company’s supplemental financial information.

Conference Call and Webcast

Second quarter 2014 results will be discussed on Monster Worldwide’s quarterly conference call on August 5, 2014 at 8:30 AM ET. A live webcast of the conference call can be accessed online through the Investor Relations section of the Company’s website at http://ir.monster.com. To join the conference call by telephone, please dial (888) 696-1396 or (706) 758-9636 and reference conference ID# 73442536. A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast. A PDF of the financial presentation can also be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.

The Company has also made available certain supplemental financial information which can be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.

For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID# 73442536. This number is valid until midnight on August 19, 2014.

Contacts

Investors: Michael McGuinness, (212) 351-7110, michael.mcguinness@monster.com

Media: Matt Anchin, (212) 351-7528, matt.anchin@monster.com

 

3


About Monster Worldwide

Monster Worldwide, Inc. (NYSE:MWW), is the global leader in successfully connecting job opportunities and people. Monster uses the world’s most advanced technology to help people Find Better, matching job seekers to opportunities via digital, social and mobile solutions including monster.com®, our flagship website, and employers to the best talent using a vast array of products and services. As an Internet pioneer, more than 200 million people have registered on the Monster Worldwide network. Today, with operations in more than 40 countries, Monster provides the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities globally. For more information visit about.monster.com

Special Note: The statements in this release that are not strictly historical, including, without limitation, statements regarding the Company’s strategic direction, prospects and future results, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties and, therefore, actual results may differ materially from what is expressed or implied herein and no assurance can be given that the Company will achieve, among other things, its outlook with respect to earnings per share for the third quarter 2014. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Notes Regarding the Use of Non-GAAP Financial Measures

The Company has provided certain Non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from Non-GAAP measures reported by other companies. The Company believes that its presentation of Non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.

Non-GAAP revenue, operating expenses, operating income from continuing operations, operating margin, income (loss) from continuing operations, (loss) income from discontinued operations, net of tax, and diluted earnings (loss) per share attributable to Monster Worldwide, Inc. all exclude certain pro-forma adjustments including: non-cash stock based compensation expense; costs incurred for the 2012 restructurings; costs incurred related to the Company’s review of strategic alternatives; income tax benefits associated with the reversal of income tax reserves on uncertain tax positions and a tax benefit related to certain losses arising from the Company’s restructuring programs; income tax provision related to the sale of a noncontrolling interest; the results of the businesses in Careers – China, Latin America and Turkey as they have been classified as discontinued operations; gain on deconsolidation of subsidiaries, net; and charges related to exited facilities and acquisition related costs. The Company uses these non-GAAP measures for reviewing the ongoing results of the Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

 

4


Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as operating income or loss before depreciation and amortization, non-cash compensation expense, and non-cash costs incurred in connection with the Company’s restructuring programs. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA excludes the impact of the pro-forma adjustments discussed above.

Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company’s ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company’s cash position for the period and should not be considered a substitute for such a measure.

Net cash and securities are defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities, plus unused borrowings under our credit facility. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.

 

5


MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2014     2013     2014     2013  

Revenue

   $ 194,441      $ 200,058      $ 392,590      $ 412,044   
  

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

     103,220        89,467        205,219        187,042   

Office and general

     49,131        52,262        104,338        103,394   

Marketing and promotion

     37,377        43,394        78,790        92,661   

Restructuring and other special charges

     —          6,828        —          19,995   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     189,728        191,951        388,347        403,092   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     4,713        8,107        4,243        8,952   

Gain on deconsolidation of subsidiaries, net

     —          —          11,828        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other, net

     (1,660     (1,357     (2,983     (2,625
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and income (loss) in equity interests

     3,053        6,750        13,088        6,327   

Provision for (benefit from) income taxes

     1,615        2,366        8,278        (9,633

Income (loss) in equity interests, net

     58        (245     (75     (703
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     1,496        4,139        4,735        15,257   

Loss from discontinued operations, net of tax

     —          (759     —          (6,893
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     1,496        3,380        4,735        8,364   

Net income attributable to noncontrolling interest

     (1,462     —          (2,636     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Monster Worldwide, Inc.

   $ 34      $ 3,380      $ 2,099      $ 8,364   
  

 

 

   

 

 

   

 

 

   

 

 

 

*Basic earnings per share attributable to Monster Worldwide, Inc.:

        

Income from continuing operations

   $ —        $ 0.04      $ 0.02      $ 0.14   

Loss from discontinued operations, net of tax

     —          (0.01     —          (0.06
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ —        $ 0.03      $ 0.02      $ 0.08   
  

 

 

   

 

 

   

 

 

   

 

 

 

*Diluted earnings per share attributable to Monster Worldwide, Inc.:

        

Income from continuing operations

   $ —        $ 0.04      $ 0.02      $ 0.14   

Loss from discontinued operations, net of tax

     —          (0.01     —          (0.06
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ —        $ 0.03      $ 0.02      $ 0.07   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     87,080        110,932        89,080        111,166   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     89,955        111,937        92,174        112,419   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA:

        

Operating income

   $ 4,713      $ 8,107      $ 4,243      $ 8,952   

Depreciation and amortization of intangibles

     11,835        15,725        24,354        31,829   

Stock based compensation

     9,063        5,470        17,236        12,264   

Restructuring non-cash expenses

     —          4,540        —          5,315   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 25,611      $ 33,842      $ 45,833      $ 58,360   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

* Earnings per share may not add in certain periods due to rounding.


MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Six Months Ended
June 30,
 
     2014     2013  

Cash flows provided by operating activities:

    

Net income

   $ 4,735      $ 8,364   
  

 

 

   

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     24,354        31,829   

Provision for doubtful accounts

     728        1,432   

Non-cash compensation

     17,236        12,264   

Deferred income taxes

     3,402        (2,607

Non-cash restructuring charges

     —          5,315   

Loss in equity interests, net

     75        703   

Gain on deconsolidation of subsidiaries

     (13,647     —     

Amount reclassified from accumulated other comprehensive income

     1,819        (23,109

Tax benefit from change in uncertain tax positions

     —          (12,869

Excess income tax benefit from equity compensation plans

     (199     (2,044

Changes in assets and liabilities, net of acquisitions:

    

Accounts receivable

     39,524        28,641   

Prepaid and other

     (7,990     15,555   

Deferred revenue

     (27,489     (31,242

Accounts payable, accrued liabilities and other

     1,259        (25,466
  

 

 

   

 

 

 

Total adjustments

     39,072        (1,598
  

 

 

   

 

 

 

Net cash provided by operating activities

     43,807        6,766   
  

 

 

   

 

 

 

Cash flows used for investing activities:

    

Capital expenditures

     (22,469     (18,388

Payments for acquisitions, net of cash acquired

     (27,005     —     

Investment in Alma Career Oy

     (6,516     —     

Cash funded to and dividends received from equity investee and other

     (616     139   

Capitalized patent defense costs

     (1,220     —     
  

 

 

   

 

 

 

Net cash used for investing activities

     (57,826     (18,249
  

 

 

   

 

 

 

Cash flows provided by (used for) financing activities:

    

Proceeds from borrowings on credit facilities

     78,800        17,500   

Payments on borrowings on credit facilities

     (8,100     (39,799

Payments on borrowings on term loan

     (4,375     (3,125

Repurchase of common stock

     (51,517     (23,378

Tax withholdings related to net share settlements of restricted stock awards and units

     (3,707     (4,987

Excess income tax benefit from equity compensation plans

     199        2,044   

Dividend paid to noncontrolling interest

     (3,021     —     
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     8,279        (51,745
  

 

 

   

 

 

 

Effects of exchange rates on cash

     1,554        (5,624
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (4,186     (68,852

Cash and cash equivalents, beginning of period

     88,581        148,185   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 84,395      $ 79,333   
  

 

 

   

 

 

 

Free cash flow:

    

Net cash provided by operating activities

   $ 43,807      $ 6,766   

Less: Capital expenditures

     (22,469     (18,388
  

 

 

   

 

 

 

Free cash flow

   $ 21,338      $ (11,622
  

 

 

   

 

 

 


MONSTER WORLDWIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     June 30,
2014
     December 31,
2013
 

Assets:

     

Cash and cash equivalents

   $ 84,395       $ 88,581   

Accounts receivable, net

     293,732         332,675   

Property and equipment, net

     126,345         124,169   

Goodwill and intangibles, net

     944,210         919,576   

Investment in unconsolidated affiliates

     23,759         220   

Other assets

     124,824         121,036   
  

 

 

    

 

 

 

Total Assets

   $ 1,597,265       $ 1,586,257   
  

 

 

    

 

 

 

Liabilities and Stockholders’ Equity:

     

Accounts payable, accrued expenses and other current liabilities

   $ 160,613       $ 167,306   

Deferred revenue

     315,786         342,156   

Current portion of long-term debt and borrowings on credit facilities

     201,600         9,375   

Long-term income taxes payable

     55,355         53,078   

Long-term debt, less current portion

     —           125,900   

Other long-term liabilities

     57,146         44,297   
  

 

 

    

 

 

 

Total Liabilities

   $ 790,500       $ 742,112   
  

 

 

    

 

 

 

Stockholders’ Equity

     806,765         844,145   
  

 

 

    

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 1,597,265       $ 1,586,257   
  

 

 

    

 

 

 


MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS

(in thousands, except per share amounts)

 

    Three Months Ended June 30, 2014     Three Months Ended June 30, 2013  
    As
Reported
    Non GAAP
Adjustments
    Consolidated
Non GAAP
    As
Reported
    Non GAAP
Adjustments
    Consolidated
Non GAAP
 

Revenue

  $ 194,441      $ —        $ 194,441      $ 200,058      $ —        $ 200,058   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

    103,220        (9,063 )a      94,157        89,467        (5,470 )a      83,997   

Office and general

    49,131        —          49,131        52,262        (1,545 )b      50,717   

Marketing and promotion

    37,377        —          37,377        43,394        —          43,394   

Restructuring and other special charges

    —          —          —          6,828        (6,828 )c      —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    189,728        (9,063     180,665        191,951        (13,843     178,108   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

    4,713        9,063        13,776        8,107        13,843        21,950   

Operating margin

    2.4       7.1     4.1       11.0

Interest and other, net

    (1,660     —          (1,660     (1,357     —          (1,357
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and income (loss) in equity interests

    3,053        9,063        12,116        6,750        13,843        20,593   

Provision for income taxes

    1,615        2,141     3,756        2,366        4,856 f,g      7,222   

Income (loss) in equity interests, net

    58        —          58        (245     —          (245
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

    1,496        6,922        8,418        4,139        8,987        13,126   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations, net of tax

    —          —          —          (759     759     —     

Net income

    1,496        6,922        8,418        3,380        9,746        13,126   

Net income attributable to noncontrolling interest

    (1,462     —          (1,462     —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Monster Worldwide, Inc.

  $ 34      $ 6,922      $ 6,956      $ 3,380      $ 9,746      $ 13,126   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

*Diluted earnings per share attributable to Monster Worldwide, Inc.:

           

Income from continuing operations

  $ —        $ 0.08      $ 0.08      $ 0.04      $ 0.08      $ 0.12   

Loss from discontinued operations, net of tax

    —          —          —          (0.01     0.01        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

  $ —        $ 0.08      $ 0.08      $ 0.03      $ 0.09      $ 0.12   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

           

Basic

    87,080        87,080        87,080        110,932        110,932        110,932   

Diluted

    89,955        89,955        89,955        111,937        111,937        111,937   
    Six Months Ended June 30, 2014     Six Months Ended June 30, 2013  
    As
Reported
    Non GAAP
Adjustments
    Consolidated
Non GAAP
    As
Reported
    Non GAAP
Adjustments
    Consolidated
Non GAAP
 

Revenue

  $ 392,590      $ —        $ 392,590      $ 412,044      $ —        $ 412,044   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Salaries and related

    205,219        (17,236 )a      187,983        187,042        (12,264 )a      174,778   

Office and general

    104,338        (6,349 )d      97,989        103,394        (2,920 )b      100,474   

Marketing and promotion

    78,790        —          78,790        92,661        —          92,661   

Restructuring and other special charges

    —          —          —          19,995        (19,995     —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    388,347        (23,585     364,762        403,092        (35,179     367,913   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

    4,243        23,585        27,828        8,952        35,179        44,131   

Operating margin

    1.1       7.1     2.2       10.7

Gain on deconsolidation of subsidiaries, net

    11,828        (11,828 )e      —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other, net

    (2,983     —          (2,983     (2,625     —          (2,625
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and loss in equity interests

    13,088        11,757        24,845        6,327        35,179        41,506   

Provision for (benefit from) income taxes

    8,278        (439 )g,h      7,839        (9,633     24,175 f,g      14,542   

Loss in equity interests, net

    (75     —          (75     (703     —          (703
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

    4,735        12,196        16,931        15,257        11,004        26,261   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations, net of tax

    —          —          —          (6,893     6,893     —     

Net income

    4,735        12,196        16,931        8,364        17,897        26,261   

Net income attributable to noncontrolling interest

    (2,636     —          (2,636     —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Monster Worldwide, Inc.

  $ 2,099      $ 12,196      $ 14,295      $ 8,364      $ 17,897      $ 26,261   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

*Diluted earnings per share attributable to Monster Worldwide, Inc.:

           

Income from continuing operations

  $ 0.02      $ 0.13      $ 0.16      $ 0.14      $ 0.10      $ 0.23   

Loss from discontinued operations, net of tax

    —          —          —          (0.06     0.06        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

    0.02      $ 0.13      $ 0.16      $ 0.07      $ 0.16      $ 0.23   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

           

Basic

    89,080        89,080        89,080        111,166        111,166        111,166   

Diluted

    92,174        92,174        92,174        112,419        112,419        112,419   

Note Regarding Non GAAP Adjustments:

The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges.

Non GAAP adjustments consist of the following:

 

  a Costs related to stock based compensation

 

  b Costs directly associated with our previously announced review of strategic alternatives.

 

  c Restructuring related charges pertaining to the strategic actions that the Company announced in November 2012. These charges include costs related to the reduction in the Company’s workforce, fixed asset write-offs, costs relating to the consolidation of certain office facilities, and professional fees.

 

  d Charges related to exited facilities associated with the move to our new corporate headquarters in Weston, Massachusetts.

 

  e Gain on deconsolidation of subsidiaries, net

 

  f Non-GAAP income tax adjustment includes the reversal of income tax reserves inclusive of interest due to uncertain tax positions and a tax benefit due to certain losses arising from the company’s restructuring.

 

  g Non-GAAP income tax adjustment is calculated using the effective rate of the reporting period, as adjusted for the effects of certain non-deductible stock based compensation and provisions for tax valuation allowances.

 

  h Non-GAAP adjustment includes tax provison for gain on deconsolidation of subsidiaries, net.

 

  i Discontinued operations related to our sale of ChinaHR and the exit of our businesses in Latin America and Turkey.

 

  * Earnings per share may not add in certain periods due to rounding.


MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION

(in thousands)

 

Three Months Ended June 30, 2014

   Careers
- North
America
    Careers -
International
    Internet
Advertising &
Fees
    Corporate
Expenses
    Total  

Revenue

   $ 110,301      $ 68,280      $ 15,860        $ 194,441   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 17,902      $ (6,974   $ 3,464      $ (9,679   $ 4,713   

Non GAAP Adjustments

     3,156        2,462        458        2,987        9,063   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 21,058      $ (4,512   $ 3,922      $ (6,692   $ 13,776   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 27,016      $ 193      $ 4,773      $ (6,371   $ 25,611   

Non GAAP Adjustments

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 27,016      $ 193      $ 4,773      $ (6,371   $ 25,611   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     16.2     -10.2     21.8       2.4

Operating margin—Non GAAP

     19.1     -6.6     24.7       7.1

EBITDA margin

     24.5     0.3     30.1       13.2

Adjusted EBITDA margin

     24.5     0.3     30.1       13.2

Three Months Ended June 30, 2013

   Careers
- North
America
    Careers -
International
    Internet
Advertising &
Fees
    Corporate
Expenses
    Total  

Revenue

   $ 109,717      $ 72,102      $ 18,239        $ 200,058   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 19,272      $ (6,054   $ 6,312      $ (11,423   $ 8,107   

Non GAAP Adjustments

     3,005        4,380        666        5,792        13,843   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 22,277      $ (1,674   $ 6,978      $ (5,631   $ 21,950   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 30,609      $ 2,727      $ 7,829      $ (7,323   $ 33,842   

Non GAAP Adjustments

     328        1,390        256        1,859        3,833   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 30,937      $ 4,117      $ 8,085      $ (5,464   $ 37,675   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     17.6     -8.4     34.6       4.1

Operating margin—Non GAAP

     20.3     -2.3     38.3       11.0

EBITDA margin

     27.9     3.8     42.9       16.9

Adjusted EBITDA margin

     28.2     5.7     44.3       18.8

Six Months Ended June 30, 2014

   Careers
- North
America
    Careers -
International
    Internet
Advertising &
Fees
    Corporate
Expenses
    Total  

Revenue

   $ 221,948      $ 138,884      $ 31,758        $ 392,590   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 30,022      $ (12,263   $ 7,155      $ (20,671   $ 4,243   

Non GAAP Adjustments

     8,544        4,621        1,182        9,238        23,585   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)—Non GAAP

   $ 38,566      $ (7,642   $ 8,337      $ (11,433   $ 27,828   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 47,712      $ 1,851      $ 10,011      $ (13,741   $ 45,833   

Non GAAP Adjustments

     3,101        215        200        2,833        6,349   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 50,813      $ 2,066      $ 10,211      $ (10,908   $ 52,182   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     13.5     -8.8     22.5       1.1

Operating margin—Non GAAP

     17.4     -5.5     26.3       7.1

EBITDA margin

     21.5     1.3     31.5       11.7

Adjusted EBITDA margin

     22.9     1.5     32.2       13.3

Six Months Ended June 30, 2013

   Careers
- North
America
    Careers -
International
    Internet
Advertising &
Fees
    Corporate
Expenses
    Total  

Revenue

   $ 225,652      $ 149,821      $ 36,571        $ 412,044   
  

 

 

   

 

 

   

 

 

     

 

 

 

Operating income (loss)—GAAP

   $ 31,695      $ (15,045   $ 12,574      $ (20,272   $ 8,952   

Non GAAP Adjustments

     13,006        11,624        1,287        9,262        35,179   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) —Non GAAP

   $ 44,701      $ (3,421   $ 13,861      $ (11,010   $ 44,131   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 54,624      $ 1,877      $ 15,767      $ (13,908   $ 58,360   

Non GAAP Adjustments

     7,542        6,480        342        3,236        17,600   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 62,166      $ 8,357      $ 16,109      $ (10,672   $ 75,960   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin—GAAP

     14.0     -10.0     34.4       2.2

Operating margin—Non GAAP

     19.8     -2.3     37.9       10.7

EBITDA margin

     24.2     1.3     43.1       14.2

Adjusted EBITDA margin

     27.5     5.6     44.0       18.4